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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of May 27, 2022 No. 638

Some questions of implementation of public purchases of oil products in the conditions of warlike situation for the purpose of reduction of their deficit in the domestic market

According to article 64 of the Constitution of Ukraine, article 12-1 of the Law of Ukraine "About legal regime of warlike situation" for the purpose of reduction of deficit of oil products in the domestic market the Cabinet of Ministers of Ukraine decides:

1. Authorize Ukrainian Railroad joint-stock company (further - JSC Ukrzaliznytsya) to perform functions of the customer on implementation of purchases of the oil products and the accompanying services connected with purchase of oil products (further - goods and services), under the external economic and other agreements (contracts), including long-term, with the subsequent domestic sale for reduction of deficit of oil products in the conditions of warlike situation.

2. Determine that:

1) JSC Ukrzaliznytsya, performing functions of the customer of goods and services, is effective in the conditions of special economic and social circumstances which arose due to the need of mitigation of consequences of the emergency situation caused by the armed aggression of the Russian Federation against Ukraine - acute shortage of oil products in the domestic market of Ukraine which makes impossible steady functioning of national economy and creates threats for the civilian population of Ukraine;

2) financing of the expenses of JSC Ukrzaliznytsya connected with purchase of goods and services is performed at the expense of own means of society, other funds raised by it including under the state guarantees of Ukraine irrespective of whether such expenses, amounts and financing sources are provided by the financial plan of the specified society;

3) the oil products acquired by JSC Ukrzaliznytsya and delivered on customs area of Ukraine are subject:

realization of JSC Ukrzaliznytsya in the domestic market of Ukraine in the amounts necessary for reduction of deficit of oil products;

to use for own needs;

to acquisition at JSC Ukrzaliznytsya for accumulating (surplus) of material values of the state material reserve, requirements satisfaction of homeland security and defense according to the procedure, determined by the Cabinet of Ministers of Ukraine;

4) amounts of oil products (remaining balance, and also job lots of oil products, logistic costs on acquisition and to which delivery significantly decreased in comparison with the similar agreements signed by other participants of the market) are subject to acquisition by public authorities or domestic sale at free prices, irrespective of their book value (cost of their acquisition, delivery and realization) according to the procedure, determined by the Cabinet of Ministers of Ukraine;

5) for the purpose of the conclusion of the external economic and other agreements (contracts) for purchase of goods and services (further - agreements):

The Department of Energy provides to JSC Ukrzaliznytsya information on the approximate average monthly amount of oil products necessary for reduction of deficit of oil products in the domestic market in 2022;

JSC Ukrzaliznytsya taking into account information specified in the paragraph the second this subitem performs market monitoring of oil products, logistics services on their delivery, carries out negotiation procedures with potential suppliers of goods and services;

JSC Ukrzaliznytsya performs the conclusion of agreements within the amounts necessary for reduction of deficit of the oil products in the domestic market estimated taking into account information specified in the paragraph the second this subitem in the procedure established by the legislation.

3. Make changes which are applied to acts of the Cabinet of Ministers of Ukraine.

4. To the Ministry of Economics together with the Ministry of Finance and the Ministry of infrastructure to submit for consideration of the Cabinet of Ministers of Ukraine the draft of the act of determination of procedure for acquisition by public authorities at JSC Ukrzaliznytsya of oil products for accumulating (surplus) of material values of the state material reserve, requirements satisfaction of homeland security and defense, and also the offer of rather possible sources of compensation of negative difference between cost of oil products and at the price of their domestic sale of Ukraine in case of essential reduction of logistic costs in comparison with the similar agreements signed by other participants of the market.

Prime Minister of Ukraine

D. Shmygal

Approved by the Resolution of the Cabinet of Ministers of Ukraine of May 27, 2022 No. 638

Changes which are made to acts of the Cabinet of Ministers of Ukraine

1. According to the procedure of the order property of Ukrainian Railroad joint-stock company, No. 1054 approved by the resolution of the Cabinet of Ministers of Ukraine of November 22, 2017 (The Official Bulletin of Ukraine, 2018, No. 4, Art. 155; 2019, No. 69, Art. 2422; 2020, No. 90, Art. 2907):

"PJSC Ukrainskaya zheleznaya doroga shall be replaced with words 1) in Item 1 of the word "joint-stock company" the Ukrainian railroad";

Item 13 to add 2) with the paragraph of the following content:

"For warlike situation and within six months after its termination or cancellation alienation (realization, sale) by society of oil products is performed according to the procedure, determined by board of society, without application of competitive bases and procedures.";

Item 14 to add 3) with the paragraph of the following content:

"For warlike situation and within six months after its termination or cancellation alienation (realization, sale) of the oil products acquired by society according to the decision of the Cabinet of Ministers of Ukraine for reduction of deficit of oil products in the domestic market is performed at free prices, irrespective of their book value (cost of their acquisition, delivery and realization).".

2. Item 24 of the plan of implementation and ensuring implementation of actions of legal regime of the warlike situation in Ukraine approved by the order of the Cabinet of Ministers of Ukraine of February 24, 2022 No. 181 "Questions of implementation and providing measures of legal regime of warlike situation in Ukraine" - with the changes made by the resolution of the Cabinet of Ministers of Ukraine of March 17, 2022 No. 309 (The Official Bulletin of Ukraine, 2022, No. 26, the Art. 1394), in the column "Name of Action of Legal Regime of Warlike Situation" to add with the paragraph of the following content:

"accomplishment of functions by society on implementation of purchases of oil products and the necessary accompanying works and services, and also from sale (realization) of oil products for reduction of deficit in the domestic market".

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